Originally posted by craigy1874
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Reply to: AccountingWeb any answers - use of home
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Previously on "AccountingWeb any answers - use of home"
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Originally posted by WordIsBond View PostWow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!
Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?
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Originally posted by WordIsBond View PostWow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!
Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?
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Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!
Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?
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Originally posted by PhiltheGreek View PostLike my Mrs being exempt from tax you mean?
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Originally posted by northernladuk View PostI don't think it's ever been mentioned on here when discussing the benefits of using the wife to mitigate tax.
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Originally posted by SuperLooper View PostI was surprised by it too, but my accountant (who is very well respected on this forum) assured me it was perfectly normal and acceptable.
It is factually correct to state that each of my company's directors is giving up a room in his/her house to the company. It just happens to be the same room in the same house for both people.
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Originally posted by northernladuk View PostUsing the missus to up the rent. That's a new one.
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I was surprised by it too, but my accountant (who is very well respected on this forum) assured me it was perfectly normal and acceptable.
It is factually correct to state that each of my company's directors is giving up a room in his/her house to the company. It just happens to be the same room in the same house for both people.
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Originally posted by SuperLooper View PostI do £4 per week each for me and the Mrs (both directors and shareholders), £416 per annum total.
I hope BT isn't claiming 4 quid a week for all their shareholders.
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I do £4 per week each for me and the Mrs (both directors and shareholders), £416 per annum total.
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Originally posted by ladymuck View PostMy accountant takes the £4 a week I journal through the company and bumps it up a bit. When I asked him why, he said:
"Although the official HMRC manuals state that use of home can be £4 PW in reality they never question a charge of £500-600"
That's an annual charge, not £500-600 PW
While we are at it, why not increase accountancy fees in the accounts, or insurance costs, as HMRC never question these costs for my clients either!
Seriously, that is some pretty bad advice you have been given there. How would you justify the increase to HMRC if they asked? Would you just quote the above line from your accountant?
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My accountant takes the £4 a week I journal through the company and bumps it up a bit. When I asked him why, he said:
"Although the official HMRC manuals state that use of home can be £4 PW in reality they never question a charge of £500-600"
That's an annual charge, not £500-600 PW
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"Mr and Mrs WIB shall provide to WIB Ltd, for compensation received, access to portions of their home to use as office space. Access shall be on the following terms:
A. Study. Up to 80 hours a week.
B. Family Room. Up to 50 hours a week.
The above shall not preclude the use of those rooms by Mr or Mrs WIB for personal use at other times, nor shall it preclude personal use by one of them concurrently with business use by someone else."
Obviously my case is different from most because some people work evenings and weekends so the study is often hopping, and when everyone is here and brainstorming a project we all move into the family room, sometimes for more than a day. Most of you guys won't be doing that kind of thing.
But specifying a max number of hours and having language specifically endorsing personal use should protect against the capital gains concern, I'd think.
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Originally posted by Jessica@WhiteFieldTax View PostGenerally, so long as the space is shared - it has some domestic use - its disregarded for Business Rates and CGT.
You do, of course, do your household accounts and admin in your garden office, TCP?
I actually emailed the VOA before it was built and they confirmed that rates wouldn’t apply anyway as it was still considered largely domestic in nature. I suspect this is because what I do is broadly considered clerical work.
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